KATHMANDU, April 30 : Mount Everest Power Development Limited has launched its Initial Public Offering (IPO). In the first phase, the company has opened share sales from Thursday for project-affected locals and Nepali workers employed abroad.
The company has allocated 860,000 shares worth Rs 86 million at a face value of Rs 100 each for residents of the project-affected areas.
Among them, residents of wards 1 and 2 of Solududhkunda Municipality, classified as highly affected areas, will receive 344,000 shares worth Rs 34.4 million.
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Similarly, residents of other wards of Solududhkunda Municipality, excluding wards 1 and 2, have been allocated 516,000 shares worth Rs 51.6 million.
Locals from the affected areas can apply for a minimum of 10 shares and a maximum of 10,000 shares until May 14. According to the issue manager, if the issue is undersubscribed within that period, applications will remain open until June 1.
The company has also allocated 172,000 shares worth Rs 17.2 million for Nepali migrant workers employed abroad. Applications for foreign-employed workers will remain open until May 6.
NIMB Ace Capital Limited is the issue and sales manager for the IPO.
Mount Everest Power Development has received approval to issue 2.58 million ordinary shares worth Rs 258 million, equivalent to 30 percent of its issued capital of Rs 860 million. The company plans to issue shares to the general public in the second phase.
For the IPO, the company received a “CARE NP BB+” rating from CARE Ratings Nepal Limited, indicating a moderate level of safety regarding the company’s ability to meet its financial obligations on time.
The company currently operates the 12-megawatt Dudhkunda Khola Hydropower Project, which was developed at a cost of Rs 2.36 billion.
